Blog
Texas PPP – SBA – EIDL Loan Fraud Lawyers
Texas PPP – SBA – EIDL Loan Fraud Lawyers
The COVID-19 pandemic brought unprecedented government assistance to small businesses and individuals across Texas. Programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program distributed hundreds of billions in aid. However, the rush to get money out led to weakened fraud controls. Now, federal prosecutors are pursuing waves of PPP and EIDL fraud charges across the state.
For businesses and people worried about facing criminal charges, experienced white collar defense lawyers can help. This guide examines Texas PPP and EIDL fraud laws, defenses, and potential penalties. It also provides tips on choosing the right lawyer for your case.
Federal PPP and EIDL Fraud Laws
Though PPP and EIDL are SBA programs, charges often allege violations of federal criminal statutes. Common allegations include:
- Wire fraud – using interstate wires to execute a scheme to defraud
- Bank fraud – schemes to defraud or obtain money from banks
- False statements – lying on loan applications
- Aggravated identity theft – using someone else’s personal information
Prosecutors can also allege conspiracy, money laundering, or other charges. The allegations usually focus on lies, misrepresentations, or material omissions made to obtain PPP or EIDL funds.
A recent SBA Inspector General report estimates over $200 billion in potentially fraudulent EIDL and PPP loans. It details how weakened controls enabled fraudsters to easily exploit the programs.
Common PPP and EIDL Fraud Schemes
Some typical alleged PPP and EIDL fraud schemes include:
- Lying about number of employees or payroll on PPP apps
- Using fake documents or stolen identities to apply
- Applying for multiple PPP loans through different lenders
- Claiming fake businesses or falsifying financial records
- Using PPP funds for personal purchases instead of payroll
Similar EIDL fraud can involve fabricating economic injury, falsifying financial data, or identity theft. Prosecutors often view such deception as an illegal effort to steal taxpayer funds.
Penalties for PPP and EIDL Fraud in Texas
Potential penalties for Texas PPP or EIDL fraud depend on the charges and circumstances. But possible punishments can include:
- Up to 30 years for bank fraud or wire fraud
- Up to 5 years for false statements
- Mandatory 2 years for aggravated identity theft
- Fines equal to twice the fraud amount
- Restitution to repay funds
Prosecutors often seek stiff sentences and multi-million dollar fines for large frauds. Even small PPP or EIDL cases can lead to prison, fines, and restitution if convicted.
Defenses Against PPP and EIDL Fraud Charges
Skilled criminal defense lawyers know how to fight federal fraud accusations in Texas. Possible defenses include:
- No intent – the government can’t prove you knowingly tried to defraud
- Good faith – you truthfully applied believing you qualified
- Mistake – errors on application were unintentional
- Cooperation – you tried to pay back funds once errors discovered
- Weak evidence – sloppy investigation or unreliable witnesses
An attorney can also scrutinize the investigation for violations of rights or procedures. Suppressing evidence or getting charges dismissed before trial may be possible in some cases.
Choosing a Texas PPP and EIDL Fraud Lawyer
Facing federal criminal charges is daunting. Building the strongest defense requires an experienced lawyer. Key credentials to seek include:
- Extensive fraud and white collar crime experience
- Past success defending complex financial cases
- Knowledge of federal sentencing guidelines
- Ability to negotiate with prosecutors effectively
- Resources to handle electronic evidence analysis
- Trial skills in case negotiation fails
It also helps to choose a lawyer you trust and can afford. Meet for a free consultation to discuss your case specifics.
Texas Federal Fraud Defense Lawyers Can Help
PPP and EIDL fraud charges shouldn’t be faced alone. An experienced federal criminal defense attorney can protect your rights and future. Don’t wait to seek skilled legal representation.